The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new "unified pension scheme" for over 23 lakh Central government employees. This scheme guarantees 50% of salary as pension and aims to provide dignity and financial security for government employees. With the option to choose between the existing National Pension System (NPS) or the new pension scheme, the UPS will be implemented from April 1, 2025. This move comes amid protests from non-BJP ruled states over the NPS and will provide a minimum pension of Rs 10,000 per month after 10 years of service.
In a move that will affect millions, the Union Cabinet has given the go-ahead for the Unified Pension Scheme (UPS) for government employees. This scheme will offer a guaranteed minimum pension and family pension for those who have completed at least 25 years of service. The option to choose between the new UPS and the existing New Pension Scheme (NPS) has been extended to both Central and state government employees. This decision will have a significant impact on the retirement benefits of these employees.